The Volkswagen Group—Europe’s largest automotive group—is facing a major challenge as it seeks to reduce costs on a massive scale. According to Reuters, Volkswagen Brand CEO Thomas Schaefer warned staff during a meeting at the carmaker’s headquarters in Wolfsburg that costs are too high and productivity is too low, making the cars uncompetitive.
To address this issue, Volkswagen has launched a €10 billion savings program, which includes staff reductions. This is a significant amount of cost cutting, equivalent to at least two large factories. Details of how the company will achieve its goal will be revealed by the end of the year. Gunnar Kilian, Volkswagen human resources board member, said: “We need to finally be brave and honest enough to throw things overboard that are being duplicated within the company or are simply ballast we don’t need for good results.”
The situation is serious. Volkswagen has recently been forced to slow down production at some of its plants in Europe due to parts supply issues and insufficient demand. If the company manages to reduce costs and improve productivity, buyers should see lower prices.
In addition, Volkswagen is also working on a new entry-level, China-specific EV platform, and all 2023 Volkswagen ID.4 EVs in the US have been recalled due to a potentially flammable sunshade.
It remains to be seen how successful Volkswagen will be in its efforts to reduce costs and improve productivity. However, if it succeeds, buyers should benefit from lower prices and improved electric vehicles.
FAQ
Q1: Are electric car batteries recyclable?
A1: Yes, electric car batteries are recyclable.
Q2: Are electric car chargers free?
A2: It depends on the charger and the location. Some electric car chargers are free, while others may require a fee.
Q3: Can electric car batteries be rebuilt?
A3: Yes, electric car batteries can be rebuilt with the right tools and knowledge.
